More to life than debt

Drizzle18

Hi!

This is my first diary and we are just entering an IVA. I was trying to pay off debts but there just wasn’t very much spare in the budget to make overpayments. We got into an awful cycle of pay the monthly payments then have to spend on the cards to live. We have £24k of debt which consist of 2 loans (both consolidation loans which clearly didn’t work… :doh:), high interest cards and a couple of catalogue accounts. We built up the debt due to cars, holidays, not having savings and then in the end just living. We were struggling to afford basic things for the children like clothes and school related costs. Last month our minimum payments hit £1k and we realised we couldn’t continue. We looked into a DMP with Payplan but they recommended an IVA which we are setting up. I feel incredibly ashamed of our debts and that we need to go down the IVA route rather than the DMP.

There’s Me, Dh and 3 Children. I work part time (12 hours a week) and I am a SAHM to our children and the main carer for our son. DH has his own business working from home, he is still in the first year so not taking a wage yet. This actually hasn’t affected our debt too much, most of that was built up before he set his business up. Things are going well so fingers crossed he can take a wage soon!

I will also use this diary to ramble, figure out how to have a life and budget without debt hanging over us and to make sure we have savings for things like car repairs, washers and fridge-freezers. I’m also looking into TOMM as I struggle keeping on top of the housework alongside everything else. Plus, I need to declutter. I have made good progress but I never seem to have the time. I must manage my time better, I know I do things inefficiently at the moment. I am sure I have much more to say but I’m having a brain fart!

Ooh I’m actually really looking forward to having a diary and getting things under control.

Here’s to a fresh start! :j

Drizzle18

Our budget set by Payplan:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 478.83
Partners monthly income after tax....... 0
Benefits................................ 2172.55 This is a lot but includes HB and DLA etc.
Other income............................ 0
Total monthly income.................... 2651.38

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 104.58
Electricity............................. 119
Gas..................................... 0
Oil..................................... 0
Water rates............................. 40.8
Telephone (land line)................... 45.99 (This includes internet)
Mobile phone............................ 65 DH is sim only and I will do the same when my contract ends
TV Licence.............................. 12.37
Satellite/Cable TV...................... 34 (This will also be cancelled when the contract ends)
Internet Services....................... 0
Groceries etc. ......................... 550 This is really high!
Clothing................................ 100 And this!
Petrol/diesel........................... 70
Road tax................................ 21
Car Insurance........................... 55.79
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 258.3 This is DLA which is not counted by Payplan as income plus £10 in child costs
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 13.89
Buildings insurance..................... 0
Contents insurance...................... 11.48
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 65
Haircuts................................ 50 This also seems high
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 20
School (trips etc)...................... 20
Total monthly expenses.................. 2417.2


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 2,651.38
Expenses (including HP & secured debts). 2,417.2
Available for debt repayments........... 234.18
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 234.18 This will be our monthly payment to Payplan for our debts.

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

Created using the SOA calculator
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I've added notes where I can. This is a budget agreed by payplan but over the next few weeks I'm hoping to adjust this and get a more accurate budget set up for us.

pidge04

Good luck with this. Wishing you well!

DrSpendLittle

Good luck!

Drizzle18

Thank you Pidge04 and DrSpendLittle. I will have a look for your diaries

All the letters have been written and stamps bought so I shall post the letters off to the creditors tomorrow.

It's my birthday this weekend :j :beer: so I need to sort through the finances as it would be nice to do something with the kids. We're really lucky where we live that there's so much to do near by that's free or a low spend :money: Of course there's a lot that is very spendy too.

Shopping is bought for this week so there's nothing to spend there. Red Nose Day at school tomorrow so I will need to donate some money for the kids to wear non-uniform. Parents evening for the big two on Tuesday. We usually take them to the place with the golden M for a treat after but I'm not sure if funds will allow.

Next week I will be taking an unplanned/unbudgeted visit to my nana. She's done really well (she's in her 90's) but has rapidly gone downhill. My Auntie doesn't think she’ll make Christmas We weren’t planning to visit until Easter but if the worse happened before then, I’d feel so awful. It’s not in the budget really but that’s partly what I wanted the emergency fund for as we aren’t local to my nana so there’s planning and expenses involved in a visit. I’ll be able to take most of the hit from next weeks money though.

I’m off to make a budget and read some diaries

Drizzle18

Hi!

It's been far too long since I updated on here. Life has been hectic recently but the Easter Holidays have started so I'm hoping things will be quieter and I can catch up.

Money wise things have been a bit spendy. I really need to keep a spending diary as I need to keep a check on this, Our new bank account is set up so just waiting to make sure things are paid into here then the IVA can start properly.

Aside from money issues, things have been really good the past few months but I can feel myself struggling again. I'm lucky to have my husband and children and although our house is too small and space is an issue I'm grateful we have a roof over our head and we're in a good location but it's all things personally. Again, I'm grateful for my job but it's not the job I want. Due to DH's business just starting and the carers etc I need to stay where I am for now. I just feel stuck!

Ah well, must plod on!

beanielou

Plodding is always good

Pip_Boy_111

Just popping in to say good luck!
Looking forward to reading about how you smash this :T

Puddleglum

Another one popping in to say hello and good luck :beer:

Drizzle18

Thank you so much beanielou, Pip Boy 111 and Puddleglum for popping in. I love having visitors :T

To hopefully resolve the job situation I am looking into going to university. I was hoping to have sent my application in by the January deadline but my reference still hasn't done the reference so I gave up. Felt it was a sign it wasn't for me but I've been looking into it and I'm still gonna try. By the time I graduate the youngest will be in school so I will be able to get the job I want. So I'm definitely feeling more positive now I have something I can work towards and it's so clich! but It's so good to feel I'll have a purpose.

I'm off to find some new (healthy - must lose the weight) recipes and get the kiddies to decide what they want to this Easter. I'm not wasting it!

Puddleglum

Never give up. If one way doesn't work, try another approach. I know this is easier said than done but how about getting on to the person who is doing you reference and remind them that it needs doing? If needs be write the reference yourself and then give it to them as an example of the sort of thing which is needed.